Published: Thursday, December 6, 2012 at 12:34 p.m.

Last Modified: Thursday, December 6, 2012 at 12:34 p.m.

Home sales jumped in Brunswick County in the first 10 months of 2012, though prices declined, according to figures from the Brunswick County Association of Realtors.

Facts

By the Numbers

Brunswick County single-family home sales, Jan.-Oct. 2011 vs. Jan.-Oct. 2012:+24.6%: Change in total sales, up from 1,343 to 1,674+49.2%: Change in distressed sales, up from 343 to 512-6.3%: Change in average price, down from $239,582 to $224,432

Distressed sales played a part in both as the low prices on foreclosed homes and short sales attracted more buyers, said Larry McNeil of Coastal Shores Resort Properties in Ocean Isle Beach and president-elect of the Brunswick Realtors.

"Somewhere around April there was an uptick in buyers" looking for investment property and second homes, McNeil said. "A lot more were looking for foreclosures and short sales."

Sales in the area covered by BCAR rose 24.6 percent to 1,674 through October from 1,343 in the first 10 months of 2011. Sales include the Leland area, where listings are dominated by the Wilmington Regional Association of Realtors' multiple listing service.

Average prices of homes sold, however, slipped 6.3 percent to $224,432 from $239,582.

The number of foreclosures and short sales jumped nearly 50 percent to 512 from 343.

New construction of single-family homes also helped buoy the sales figures, McNeil said.

Homes continue to be built at a healthy pace in Brunswick Forest and St. James and homes built on speculation are rising on the beaches.

"We had a statewide meeting in early fall where we looked at the state in terms of new home construction and sales," McNeil said. "That was up in just about every single area.

"By next spring we are going to have construction break out again and see another tick up in that."

In another piece of good news, McNeil said that properties that are not distressed are getting multiple offers for the first time in four years, which could help boost prices.

He saw prices rising 3 to 4 percent over the next six months.

Others were not so optimistic.

"I don't know that prices will go up," said Pete Frandano of Southport Realty and a past president of BCAR. "What we have seen is at least a bottoming out.

"It will take longer than a year and less than five years before we will start to see price appreciation."

Frandano also sees more activity in the new-home market after that segment reached historic lows in the midst of the housing collapse.

"It's certainly not up to that 2003 to 2006 level of activity," but it's not at the low point of 2009-10 either, he said, pointing out that "this area was on par with the worst hurt places in the country."

Prices on the beaches – he cited Oak Island – are now attracting people who want to invest. Southport, also, "will push in the right direction."

"In the outlying areas, the U.S. 17-Supply area, there is way too much inventory. It will be a long time before we see those areas going again," Frandano said. But properties within a couple or three miles of the water will hold their value, he added.

The beaches are holding their own, both Frandano and McNeil said.

Homes are selling best in the $220,000 to $250,000 price range, according to McNeil. Those generally are retirement homes bought by people moving to the area, rather than second homes on the beach or islands, he added.

Other than Leland and St. James, McNeil said that Carolina Shores was showing strength.

Longtime Brunswick broker Art Skipper, owner of Art Skipper Realty on Oak Island, said reducing the inventory of foreclosed homes is key to the county's strength.

The increase in distressed sales in Brunswick is a step in the right direction, though there's a chance the banks will add to the inventory in the coming months, McNeil said.

"We expected to have another release by the banks of distressed sales, but we haven't seen that in his area yet," he said.

Still, the market is working to pare those properties.

"Most of the opportunity deals that investors are looking for are gone," Frandano said.

"Vultures have a place in the ecosystem. The vulture capital is back and has done its job (getting) the ecosystem clean again."

<p>Home sales jumped in Brunswick County in the first 10 months of 2012, though prices declined, according to figures from the Brunswick County Association of Realtors.</p><p>Distressed sales played a part in both as the low prices on foreclosed homes and short sales attracted more buyers, said Larry McNeil of Coastal Shores Resort Properties in Ocean Isle Beach and president-elect of the Brunswick Realtors.</p><p>"Somewhere around April there was an uptick in buyers" looking for investment property and second homes, McNeil said. "A lot more were looking for foreclosures and short sales."</p><p>Sales in the area covered by BCAR rose 24.6 percent to 1,674 through October from 1,343 in the first 10 months of 2011. Sales include the <a href="http://www.starnewsonline.com/section/topic9971"><b>Leland</b></a> area, where listings are dominated by the <a href="http://www.starnewsonline.com/section/topic9987"><b>Wilmington Regional Association of Realtors</b></a>' multiple listing service.</p><p>Average prices of homes sold, however, slipped 6.3 percent to $224,432 from $239,582.</p><p>The number of foreclosures and short sales jumped nearly 50 percent to 512 from 343. </p><p>New construction of single-family homes also helped buoy the sales figures, McNeil said.</p><p>Homes continue to be built at a healthy pace in Brunswick Forest and St. James and homes built on speculation are rising on the beaches.</p><p>"We had a statewide meeting in early fall where we looked at the state in terms of new home construction and sales," McNeil said. "That was up in just about every single area.</p><p>"By next spring we are going to have construction break out again and see another tick up in that."</p><p>In another piece of good news, McNeil said that properties that are not distressed are getting multiple offers for the first time in four years, which could help boost prices.</p><p>He saw prices rising 3 to 4 percent over the next six months.</p><p>Others were not so optimistic.</p><p>"I don't know that prices will go up," said Pete Frandano of Southport Realty and a past president of BCAR. "What we have seen is at least a bottoming out.</p><p>"It will take longer than a year and less than five years before we will start to see price appreciation."</p><p>Frandano also sees more activity in the new-home market after that segment reached historic lows in the midst of the housing collapse. </p><p>"It's certainly not up to that 2003 to 2006 level of activity," but it's not at the low point of 2009-10 either, he said, pointing out that "this area was on par with the worst hurt places in the country."</p><p>Prices on the beaches – he cited Oak Island – are now attracting people who want to invest. Southport, also, "will push in the right direction."</p><p>"In the outlying areas, the U.S. 17-Supply area, there is way too much inventory. It will be a long time before we see those areas going again," Frandano said. But properties within a couple or three miles of the water will hold their value, he added.</p><p>The beaches are holding their own, both Frandano and McNeil said.</p><p>Homes are selling best in the $220,000 to $250,000 price range, according to McNeil. Those generally are retirement homes bought by people moving to the area, rather than second homes on the beach or islands, he added.</p><p>Other than Leland and St. James, McNeil said that Carolina Shores was showing strength.</p><p>Longtime Brunswick broker Art Skipper, owner of Art Skipper Realty on Oak Island, said reducing the inventory of foreclosed homes is key to the county's strength.</p><p>The increase in distressed sales in Brunswick is a step in the right direction, though there's a chance the banks will add to the inventory in the coming months, McNeil said.</p><p>"We expected to have another release by the banks of distressed sales, but we haven't seen that in his area yet," he said.</p><p>Still, the market is working to pare those properties.</p><p>"Most of the opportunity deals that investors are looking for are gone," Frandano said.</p><p>"Vultures have a place in the ecosystem. The vulture capital is back and has done its job (getting) the ecosystem clean again."</p><p><a href="http://www.starnewsonline.com/section/topic99"><b>Wayne Faulkner</b></a>: 343-2329</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @bizniznews</p>